The interim consolidated financial statements for the six months ended
30 June 2018 were approved by the Board of Directors of Société Foncière
Lyonnaise on 26 July 2018, at its meeting chaired by Juan José Brugera.

Business indicators were once again robust in the first half thanks to
the high portfolio occupancy rate, while the period also saw further
gains in the portfolio's appraisal value and the Company's net asset
value.

The auditors have completed their review of the financial statements and
issued their report on the interim financial information, which does not
contain any qualifications or emphasis of matter.

First-half consolidated rental income amounted to €96.1 million, down
by a modest €2.6 million or 2.6% from the €98.6 million reported for
the same period of 2017. Like-for-like growth went a long way towards
offsetting the impact of selling the IN/OUT property in September 2017.

On a like-for-like basis (excluding all changes in the portfolio
affecting period-on-period comparisons), rental income was €4.2
million (4.9%) higher, reflecting the impact of new leases signed
in the second half of 2017 and the first half of 2018, mainly in
the Washington Plaza, 103 Grenelle, Cézanne Saint-Honoré and 9
Percier properties, as well as an increase in rents for Galerie
des Champs-Elysées retail units.

The sale of the IN/OUT building on 29 September 2017 led to a €6.5
million decrease in rental income compared to first-half 2017.

Lastly, income from assets under redevelopment and various
penalties dipped by €0.3 million versus first-half 2017.

Operating profit before disposal gains and losses and fair value
adjustments to investment property amounted to €78.7 million in
first-half 2018 versus €82.5 million in the year-earlier period.

The portfolio’s appraisal value at 30 June 2018 was 2.9% higher on a
like-for-like basis than at 31 December 2017. The increase led to the
recognition of positive fair value adjustments to investment property
of €159.2 million at 30 June 2018 versus positive adjustments of
€382.6 million at 30 June 2017.

Net finance costs amounted to €16.5 million in first-half 2018
compared with €21.2 million in the year-earlier period. The
period-on-period decrease of €4.6 million reflected the Group's lower
average cost of debt and reduced debt burden, which led to a €6.2
million reduction in recurring financial expense.

After taking into account these core items, the Group reported
attributable net profit for the period of €200.2 million, compared
with €378.7 million in first-half 2017. EPRA earnings came to €51.7
million in first-half 2018 compared with €49.7 million in the
year-earlier period, an increase of 4.1%.

First-half 2018 Business Review

Rental operations:

In a still favourable rental market in the Paris region, shaped by
increased volumes compared to 2017 and higher rents, particularly in the
capital’s Central Business District, during the first half of 2018 SFL
signed leases on around 8,500 sq.m., located mainly in the Washington
Plaza, Cézanne Saint-Honoré and Louvre Saint-Honoré complexes.

The new leases were signed at an average nominal rent of €686 per sq.m,
corresponding to an effective rent of €603 per sq.m.

The physical occupancy rate for revenue-generating properties remained
high, standing at 96.5% at 30 June 2018 compared with 96.4% at 31
December 2017. The remaining vacant units are located mainly in the
Cézanne Saint-Honoré complex in Paris and the Le Vaisseau building in
Issy-les-Moulineaux. The EPRA vacancy rate improved to 2.7% from 3.1% at
31 December 2017.

Development operations:

Properties undergoing development at 30 June 2018 represented roughly
15% of the total portfolio. They consist mainly of three flagship
projects being implemented over the next four years, concerning:

the retail space in the Louvre Saint-Honoré complex,

the Emile Zola office complex acquired in 2017, which will be
extensively remodelled based on the building permit obtained in May
2018,

the 96 Iéna building, for which the planning appeal process has now
ended, allowing renovation work to begin next January.

Capitalized work carried out in first-half 2018 totalled €13.6 million
and concerned the above three redevelopment projects, as well as work to
improve common areas and the services offered by the Group’s properties
in response to the new needs expressed by tenants and users on the back
of emerging office use practices.

Portfolio operations:

No properties were purchased or sold during first-half 2018.

Financing

In May 2018, SFL issued €500 million worth of seven-year bonds maturing
on 29 May 2025 and paying an annual coupon of 1.50% (see press release
dated 17 May 2018). The proceeds will be used for general corporate
purposes. The issue, at a historically low interest rate, extends the
average maturity of the Group’s debt, as part of its proactive balance
sheet management strategy.

Net debt at 30 June 2018 amounted to €1,699 million, compared with
€1,631 million at 31 December 2017, representing a loan-to-value ratio
of 24.9%. At 30 June 2018, the average cost of debt after hedging was
1.8% and the average maturity was 4.8 years.

At the same date, SFL had €820 million in undrawn lines of credit.

Net Asset Value

The consolidated market value of the portfolio rose by 2.9% to €6,409
million excluding transfer costs at 30 June 2018, from €6,229 million at
31 December 2017. The increase reflected higher rental values, resilient
prime property yields in Paris and the value added by the Group to
properties undergoing redevelopment.

The average EPRA topped-up net initial yield (NIY) was 3.2% at 30 June
2018, unchanged from 31 December 2017.

EPRA NNNAV stood at €3,830 million or €82.3 per share at 30 June 2018
versus €80.1 per share at 31 December 2017, reflecting increases of 2.7%
over the past six months and 12.0% over twelve months.

Board of Directors

The Board of Directors noted Anne-Marie de Chalambert’s decision to
resign from her position as a director and extended its warmest thanks
to her for her valuable contribution to the Board’s work since she was
first elected in 2010.

During the same meeting, the Board appointed Arielle Malard de
Rothschild as an independent director, subject to ratification at the
Company's next General Meeting.

Leader in the prime segment of the Parisian commercial real estate
market, Société Foncière Lyonnaise stands out for the quality of its
property portfolio, which is valued at €6.4 billion and is focused on
the Central Business District of Paris (#cloud.paris, Edouard VII,
Washington Plaza, etc.), and for the quality of its client portfolio,
which is composed of prestigious companies in the consulting, media,
digital, luxury, finance and insurance sectors. As France’s oldest
property company, SFL demonstrates year after year an unwavering
commitment to its strategy focused on creating a high value in use for
users and, ultimately, substantial appraisal values for its properties.